U.S. patent application number 09/729397 was filed with the patent office on 2002-02-21 for computerized system and method for conducting an online virtual auction.
Invention is credited to Fritsch, Daniel Scott, Tatge, Jason G..
Application Number | 20020023038 09/729397 |
Document ID | / |
Family ID | 22613051 |
Filed Date | 2002-02-21 |
United States Patent
Application |
20020023038 |
Kind Code |
A1 |
Fritsch, Daniel Scott ; et
al. |
February 21, 2002 |
Computerized system and method for conducting an online virtual
auction
Abstract
An auction system and method is disclosed which displays a
graphical representation of a buy bid, ask bid and a series of
incremental bids therebetween along a scale. A user may enter a new
bid by moving the computer screen cursor to a position on the scale
and initiating an entry command. The system then reconfigures the
scale to reflect the newly entered bid should the spread between
the buy bid and ask bid reach a select level the incremental bids
are reassociated with a decreased monetary value and possibly
reconfigured in the quantity of incremental bids within the
spread.
Inventors: |
Fritsch, Daniel Scott;
(Chapel Hill, NC) ; Tatge, Jason G.; (Cordova,
TN) |
Correspondence
Address: |
BAKER, DONELSON, BEARMAN & CALDWELL
Five Concourse Parkway, Suite 900
Atlanta
GA
30328
US
|
Family ID: |
22613051 |
Appl. No.: |
09/729397 |
Filed: |
December 4, 2000 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
60168816 |
Dec 3, 1999 |
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Current U.S.
Class: |
705/37 |
Current CPC
Class: |
G06Q 30/0601 20130101;
G06Q 30/08 20130101; G06F 3/04847 20130101; G06T 11/206 20130101;
G06Q 40/04 20130101 |
Class at
Publication: |
705/37 |
International
Class: |
G06F 017/60 |
Claims
1. A method of conducting an auction utilizing a network computer
system connectable to a plurality of monitors comprising the steps
of: (A) displaying an image of at least one scaled graph having
incremental bid levels upon a computer monitor reflecting a range
of monetary values; (B) graphically displaying an ask bid at a
select incremental bid level upon the scaled graph; (C) graphically
displaying a buy bid at a select incremental bid level upon the
scaled graph; (D) graphically displaying a spread having a
plurality of the incremental bid levels between the graphically
displayed ask bid and the graphically displayed buy bid; (E)
reconfiguring the scaled graph with the displayed ask bid, buy bid
and spread in response to the spread decreasing to a select
quantity justifying a reallocation of the incremental bid
levels.
2. The method of conducting an auction of claim 1 wherein the
reconfiguration of the incremental bid levels is determined by a
mathematical formula.
3. A method of conducting an auction utilizing a networked computer
system having a plurality of coupled monitors, the method
comprising the steps of: (A) displaying a graphical scale upon a
monitor; (B) displaying a buy bid upon the graphical scale; (C)
displaying an ask bid upon the graphical scale; (D) displaying a
plurality of incremental bid levels upon the graphical scale
between the buy bid and the ask bid, the quantity distribution and
monetary valuation of each bid level being dependent upon the
spread between the buy bid and the ask bid, and (E) graphically
redisplaying the graphical scale, the buy bid upon the graphical
scale, the ask bid upon the graphical scale in response to the
narrowing of the spread between the buy bid and the ask bid with
the entry of a new bid, the new quantity distribution and monetary
valuation of each incremental bid levels being dependent upon the
spread between the buy bid and ask bid.
4. The method of conducting an auction of claim 1 wherein the
reconfiguration of the incremental bid levels is determined by a
mathematical formula.
5. A system for auctioning goods between remote users and an
auction service provider comprising: (A) a host computer network,
including database server means to electronically store auction
data and means to access and transmit auction data in response to
user commands; (B) remote computer workstations including a video
monitor, means to send user commands to the host computer network,
and means to receive and display on the video monitor the auction
data from the host computer network; (C) communication network
means for electronically linking the computer workstations to the
host computer network; (D) means for generating a graph or graphs
upon the video monitors; (E) means for displaying a sell bid upon a
graph; (F) means for displaying a buy bid upon a graph; (G) means
for determining the spread between said sell bid and said buy bid;
(H) means for determining the quantity and monetary value of a
plurality of incremental bid levels associated with the spread; (I)
means for displaying the plurality of incremental bid levels
associated with the spread; and (J) means for redisplaying the
graph, the sell bid, the buy bid and the spread upon the video
monitor with a reallocation of the quantity and monetary values
associated with the incremental bid levels in response to a
narrowing of the spread with the entry of a new sell bid or buy
bid.
6. A system for auctioning goods comprising, (A) a networked
computer system having a plurality of monitors; (B) means for
generating a graph having a plurality of incremental levels
representing monetary values the quantity and monetary value of
each incremental level being determined by a spread between a buy
bid and a sell bid; and (C) means for regenerating the graph and
the related quantity and monetary values associated with the
incremental bid levels in response to a narrowing of the spread
between the buy bid and the sell bid.
Description
REFERENCE TO RELATED APPLICATION
[0001] This application is based on U.S. patent application Ser.
No. 60/168,816 filed Dec. 3, 1999.
FIELD OF INVENTION
[0002] The invention relates generally to virtual auctions, and
more particularly to a virtual market place being accessible in
real-time to many users through a computer network wherein the
graphical display of the bids are illustrated dynamically.
BACKGROUND OF THE INVENTION
[0003] Whether an auction is performed over the Internet or in a
more traditional setting, they are historically one-dimensional in
nature and scope. In other works, an auctioneer attempts to secure
a series of progressively higher bids until a highest bid is
secured and a sale made. At times a reverse auction is held,
whereby the bidding process is done in reverse and eventually the
lowest bidder makes the sale.
[0004] It is an object of the present invention to add a new
dimension to the auction process. In a true, free-flowing
marketplace it is not uncommon for an individual or company to be a
buyer at one price and a seller simultaneously at a slightly higher
price. For example, an agricultural trading company might be a
buyer of barge corn at New Orleans at $2.15 per bushel, and at the
same time be a seller at $2.19 per bushel. However to date, all
Internet auction and trading platforms have been one dimensional in
nature. The bid/ask marketplace according to the present invention
allows these 2-dimensional transactions to occur
simultaneously.
[0005] Further, current one-dimensional Internet trading platforms
may be able to secure the highest price, or lowest price for a
given product. However, from the time the highest price (or lowest
price) is obtained until the time the buyer accepts or denies the
high (or low) offer price can be several hours, or even days. It is
an object of the present invention to seek out the best price and
determine whether the buyer either accepts or denies the price
within minutes of when the auction is closed. It is important to
note that if a buyer or seller decides to utilize a proxy bid or
offer (not present when the auction was held) they should
automatically agree to the purchase or sale if their price is
accepted.
[0006] Another problem associated with auction sites has been the
opportunity for error in entering a buy or ask bid. The bidder
typically enters a new bid by manually typing a new bid monetary
amount and submitting the new amount electronically to the
auctioneer. However, because of the pace of some auctions bidders
often hurriedly submit and enter their bids without carefully
examining their submission. As such, bids are often entered in an
incorrect amount which may result in the bidder buying or selling
the item at an unwanted price. For example, a buyer may wish to
enter a buy bid amount of $24.50 but instead accidently type in and
enter a buy bid of $25.40, which could result in the acceptance of
the erroneous buy bid in an amount higher than the desired buy
bid.
[0007] Another problem associated with auctions may be the
misperception of the minimal incremental bid level associated with
the good being auctioned. For example, when the difference or
spread between a buy bid and a sell bid is large the minimal
increment may be $10.00. However, as the spread narrows the minimal
incremental bid may decrease to $1.00, then another smaller
quantity, until a select minimal incremental bid is reached. A
participant in the auction however may not realize that the minimal
incremental bid level has been reduced, and thus the participant
may submit a bid which is greater than an amount necessary to gain
the controlling bid.
[0008] Accordingly, it is seen that a need remains for a method of
auctioning that reduces the opportunity for errors in entering the
bid amount. It is the provision of such that the present invention
is primarily directed.
BRIEF DESCRIPTION OF THE FIGURES
[0009] FIG. 1 illustrates an overview of a computer network
utilized according to a preferred form of the invention;
[0010] FIG. 2 illustrates an auction application architecture
according to a preferred form of the invention;
[0011] FIGS. 3-12 are a series of illustrations showing the monitor
screen of a workstation through the different steps of an
auction.
DETAILED DESCRIPTION OF THE INVENTION
[0012] With reference next to the drawing, when the system
according to the present invention is utilized, the trading
platform identifies and keeps track of all participants registered
for a given auction. In turn, the auction platform sends a message
to each participant telling them whether they have the current bid
or do not have the bid. Conventional bid/ask markets require that
the user refresh their screen to get the latest bid. In contrast,
the present invention preferably utilizes Java based bidding
screens and automatically transmits bids to all participants as
they occur in real-time.
[0013] The bidding process in a real-time marketplace can be fast
and furious. Bidding does not necessarily occur in even price
increments as prices can jump several increments at a time.
Conventional systems which have bidders type in bids manually can
often cause errors (for example, it would be easy for a person to
type in $20.5 instead of the desired $2.05). The graphical
interface illustrated by a color bar indicating the current buy bid
and current ask bid, also known as sell or offer bid, on a scale
according to the present invention allows market participants
(buyers or sellers) to change the bid amount graphically through
the color bar to a desired bidding level, thereby eliminating any
typing and associated errors. A numerical representation (i.e.
$2.05) as well as the change in the color bar indicates further
price changes. Numerical price changes and the price spread between
bid and ask are displayed graphically. Audio feedback, i.e. a beep,
when the bid changes, can also be incorporated according to a
preferred embodiment of the system according to the present
invention.
[0014] The look and feel of real-time bidding with graphical
interface can take on various forms. Multiple lots, each with its
own bidding graphic can be displayed on one screen. In the
preferred embodiment, these graphics are displayed as a line graph;
a bar chart; or any other suitable graphical interface.
[0015] The present invention further incorporates instantaneous
scale changes, as the bid/ask prices approach each other. In other
words, the system according to the preferred embodiment preferably
automatically rescales the graphics to dynamically calculate and
represent the changing environment and hence bidding increments.
For example, the following illustrates how this would occur:
1TABLE 1 Current Buy Bid Current Sell Bid Bid/Ask Spread Bidding
Increment $100.00 $150.00 $50.00 $5.00 $125.00 $135.00 $10.00 $1.00
$128.00 $130.00 $2.00 $0.25
[0016] Basically, the starting buy bid is $100.00 and the starting
sell bid is $150.00, resulting in a bid/ask spread of $50.00. The
system according to the present invention preferably is
preprogrammed to use 10 bidding increments in this particular
example resulting in an increment of $5.00 for each bid. After
further bidding the spread, as indicated in the second entry in
Table 1, the bid/ask spread is reduced to $10.00 resulting in a
bidding increment of $1.00 being generated. Finally, the bid/ask
spread has been reduced to $2.00, however in this particular
example the system is provided with a minimum bid increment of
$0.25 and hence that is generated and used for final bidding. A
trade, and hence both the ask and bid being $129.25, being
completed at $129.25 for example. It should be understood that the
minimal bid increment is determined by the amount of spread between
the buy bid and sell bid, but that it must also maintain standard
pricing increments. Also, the minimal increment may be established
by a seller or the auctioneer. A mathematical formula may be
instituted to derive these minimal bid increments according to the
spread.
[0017] This distinct format allows for a quick and efficient
trading platform, and at the same time achieves the best price.
Again, it is important to note that the same graphic is scaled
accordingly throughout the process, which allows for easy
visualization, whether the price spread is $50.00 or $0.50.
Alternatively, the scale can remain unchanged (see, FIGS. 4A-9B,
for example).
[0018] Further, live markets require communications between traders
and the market. The system according to the present invention has
the ability to instantaneously send discrete messages to an
individual participant or a global message to all (although a
verbal transmission will be achievable when broadband technology
becomes more widely adopted by our market participants).
Participants likewise will be able to communicate back to the
market in private. For example, a large 1,000,000-unit order, with
100,000-unit minimums is occurring across a platform according to
the present invention. The winning bidder decides to take
400,000-units of the order, and now the remaining 600,000 units
must offered. The market manager can send a discrete message to the
winning bidder and in turn discover that their bid was only good
for 400,000 units. The market manager can then tell participants
that 600,000 units are still up for play, and continue the market.
The present invention can support various auction types, including:
Multi-lot Regular and Reverse Auctions; Single-lot Regular and
Reverse Auctions; Multi-lot and Single-lot Bid/Ask Auctions; and
Multi-lot Dutch Auctions (fully-automated).
[0019] Referring now to the numerous figures, wherein like
references identify like elements of the invention, FIG. 1
illustrates an overview of a computer network 10 utilized according
to a preferred form of the invention. The network 10 includes a
primary web server 20, a secondary web server 30 (which
collectively form conventional Windows Load-Balancing Services
Cluster as is well known), a primary database server 40, a
development web server 50, and a development database server 60 all
connected through a router 70 to a computer network 80. In the
preferred form the computer network 80 takes the form of the
Internet with a connection being made by a T1 line for example.
[0020] Referring now also to FIG. 2, therein is illustrated an
auction application architecture used according to a preferred form
of the invention. The system according to the present invention
includes a client or user interface 90, routing software 100
preferably implemented on the web server 20 and auction controller
software 110 preferably implemented on the database server 40. It
should be understood the interface 90 and routing software 100, and
the routing software 100 and auction controller 110 are
communicable with one another. The web servers preferably used
include dual Pentium III processors, are redundant and include Raid
5 drives which provide data striping at the byte level and also
stripe error correction, as is well known. Automatic database
mirroring and daily tape backups are also preferably
implemented.
[0021] The Client 90 preferably runs as a Java applet in browser
software locally at a user's site. There are preferably separate
applets available for single (e.g., PVA) and multi-lot auctions and
for auction management. The applets preferably connect directly to
the Software Router 100 using TCP/IP sockets and a proprietary
transfer protocol. The applets preferably continually listen for
messages from the Software Router 100 and monitor connection
viability. The applets are preferably compatible with industry
standard browser software (i.e., Microsoft Internet Explorer and
Netscape Navigator) and support dynamic HTML and client script for
online auction lot listings and forms-based input (new listings).
The applets are preferably implemented using "pure" Java 1.1 for
bidder applications which results in Netscape 4.06 and IE 4.0 and
greater browsers being supported.
[0022] The software router 100 preferably maintains client socket
connections and stores a list of IP addresses of all connected
users. The software router 100 further preferably handles messaging
to and from clients 90 and the auction controller 110, however does
not perform any of the business (auction) logic.
[0023] The software router 100 runs as a custom Microsoft Windows
NT service. Windows Load Balancing Services ("WLBS") provides for
redundancy and high-availability so client (90) connections are
maintained even in the event of a back-end server (database server
110) disruption.
[0024] The auction controller 110 preferably runs under Microsoft
Transaction Server, handles client messages sent through the Router
software 100, returns all relevant auction information to clients
90 via the router software 100, handles all database updates and
notifies clients 90 of changes via the router software 100, and
checks and maintains database state. The database server 10 is
preferably implemented using SQL Server 7.0. The auction controller
110 preferably runs under Microsoft Transaction Server for
efficiency (connection pooling) and automatic transaction
support.
[0025] The system according to the preferred form of the present
invention is readily scalable as it conforms to Microsoft Windows
Distributed internet Applications Architecture (Windows DNA), the
architecture permits multiple auctions to be run concurrently, all
transmitted messages are very small (<<1K) which provides for
very low bandwidth connections and thousands of simultaneous
bidders, and Windows Load Balancing Services (WLBS) allows for
multiple Web services and Software Router services to be run
simultaneously.
[0026] According to a preferred form of the invention, a client 90
can be initialized as follows. The user connects via a web browser
after a login and password are validated and an auction is
selected. A Java Bidder Applet (JBA) 90 loads from Web Server 20
and establishes a direct socket connection to the Software Router
(SR) 100. The JBA 90 sends a request to the SR 100 for auction info
and supplies buyerid (buyer identification) and auctionid (auction
identification) (i.e. data to identify th operator of JBA 90 and
the auction the operator of JBA 90 wishes to join). The SR 100
retrieves auction and active lot information from Auction
Controller (AC) 110 and sends it back to JBA 90.
[0027] Once initiated, bids can be placed in accordance with the
following preferred method. The JBA 90 sends a message to the SR
100 to place a bid and supplies auctionid, lot number, bid amount,
and buyerid (same information as before plus the amount and price).
The SR 100 sends the bid request to the AC 100 which checks to see
if the bid is acceptable. If so, the AC 110 posts the new bid in
the database and sends a message back to SR 100. The SR 100 in turn
sends the message back to bidder JBA 90 indicating the bid was
accepted and broadcasts the new bid amount to all connected JBA
clients 90. If not, the AC 110 sends an error message back to SR
100, which routes an error message back to bidder JBA 90.
[0028] Preferably, there is a corresponding JAVA Auction Applet
("JAA") which enables authorized users to manage auction for
example by: starting or stopping an auction; sending personalized
or global messages to bidders; editing lot information including:
lot status, asking bid, etc.; and disabling bidders. A JAA
preferably communicates through the software router 100 with the AC
110 in the same manner as a JBA. Preferably, all actions performed
through a JAA and impact an auction causes the SR 100 to send
updated auction data to all bidders (JBA's).
[0029] Both auction management (JAA) and bidding (JBA) use the same
messaging protocol, although many more messages are available to
the auction management applications. The protocol utilized
preferably is designed to minimize an amount of information
transmitted across the Internet, so that many simultaneous users
can participate in auctions without saturating the connection to
the SR 100. Moreover, the messaging protocol is preferably
extensible so that new functions can be made available to bidders
and auction managers as the need arises.
[0030] Referring now to FIG. 3, therein is illustrated a user
interface 300 according to a preferred form of the present
invention. The interface 300 includes a sell bid selector
(graphical scale element) 310, sell current offer amount window
320, a current seller identifier window 330, a new sell offer
amount identifier window 340, and a new offer bid submit button
350. Similarly, the interface 300 further includes a buy bid
selector (graphical scale element) 360, buy current bid amount
window 370, a current buyer identifier window 380, new buy bid
amount identifier window 390, and a new buy bid submit button 400.
The interface 300 further includes a lot status indicator window
410, a chat window 420 and a chat history window 430. The computer
monitor also displays a conventional, movable screen cursor 435 the
position of which is manually controlled by the user through
movement of the computer mouse, entry by key pad or other similar
device, and the operation of which is controlled by the computer
operating system.
[0031] With continued reference to FIG. 3, there is illustrated an
example of an automatic auction wherein the starting sell offer
(bid) is $50.00 as shown in current offer amount window 320, and
the starting buy bid is $40.00 as shown in the buy current bid
amount window 370. The system automatically set the new sell offer
amount identifier window 340 at the next decreasing incremental
level of $49.00 and the new buy bid identifier window 390 at the
next increasing incremental level of $41.00. Graphically, the sell
bid selector 310 also incrementally illustrates the prospective new
sell offer amount of $49.00. It should be noted that the difference
between the current offer of $50.00 and the new sell offer amount
of $49.00 is colored or shaded, herein cross-hatched, differently
from that of the current bid so that users can readily identify the
difference. Similarly, the difference between the current bid
amount of $40.00 and the new buy bid amount of $41.00 is
graphically indicated by difference in color, shading or as herein
cross-hatching.
[0032] As shown in FIG. 4, a user, in this example a buyer, may
disregard the automatic incremental increase in the next sell offer
or buy bid shown by the cross hatched section in order to increase
the user's bid in an amount greater than the one incremental level.
To do so, the user moves the screen cursor 435 to the incremental
level upon the buy bid selector 360 which represents the user's
desired buy bid. Herein, the buyer has bypassed the automatic buy
bid of $41.00 and has instead moved the cursor to the $44.00
increment level upon the buy bid selector 360. The user then
initiates an entry signal by conventionally clicking upon the
computer mouse left click key. Entry results monetary values in the
graphical incremental level are shown in the new buy bid amount
identifier window 390. Thus, the user is able to confirm the
desired entry both graphically upon the buy bid selector 360 and
numerically within the new bid amount identifier window 390. It
should be noted that this is accomplished through conventional
positioning recognition software by recording the relative x-y
position of each element of the bid selector 310 or 360 and
correlating it to the relative x-y position of the cursor 435. For
example, a cursor position of 450/250 is correlated to the
underlying scale wherein an x-y position of 450/250 indicates a bid
amount of $44.00. The user then finalizes entry of the bid amount
by moving the cursor 435 to and clicking upon the new buy bid
submit button 400.
[0033] As shown in FIG. 5, once the buy bid is accepted by the
auctioneer the buy bid selector 360 and buy current bid amount
window 370 are reconfigured to indicate the new buy bid amount of
$44.00. The current buyer identifier window 380 is also updated to
indicate that the user's bid has been accepted and therefore that
user is the current buyer with the indication of the current buyer
being "YOU". The buy bid selector 360 and new buy bid amount
identifier 390 are updated to indicate a new automatic incremental
increase of one incremental level, i.e. the new buy bid level is
increased to $45.00.
[0034] With reference next to FIG. 6, should the seller user
decrease the current sell bid amount from $50.00 to $47.00, either
through a series of automatic transactions or by manually
increasing the sell bid by more that one incremental level as
previously describe through the use of the cursor 435, the spread
between the sell current offer amount of $47.00 and the buy current
bid amount of $44.00 is less that the preferred ten incremental
levels. As such, the sell bid selector 310 and the buy bid selector
360 are graphically reconfigured so that the quantity of
incremental bid levels and the associated monetary values
associated with each incremental level is reduced, as previously
discussed the incremental levels may be determined by simply
mathematical formulas. Here, the incremental level is reduced from
$1.00 to 50 cents. It should be noted that the incremental level
must be equal to or greater than a minimum value set by either
market parameters or the seller of the goods. The system
automatically changes the incremental level, and possibly the
quantity of incremental bids within the spread, so that bidders can
refine their bids as the spread decreases. This automatic
reconfiguration of the graphics allows users to immediately
recognize the narrowing of the spread and to recognize that the bid
increments need not be as large. This aids in preventing bidders
from unknowingly increasing the next bid beyond a recognized
minimal increase.
[0035] With reference next to FIG. 7, there is shown the entry of
another buyer who has increased the buy bid from $44.00 to $45.00.
This results in a change in the buy current bid amount window 370
to $45.00, a change in the current buyer identifier 380 to
"INTERNET BUYER", a change in the new buy bid amount identifier 390
to $44.25, and a graphical reconfiguration of the buy bid selector
360 to reflect both the new current bid amount and the new
incrementally increased next bid amount of $45.25.
[0036] With reference next to FIG. 8, there is shown a buyer moving
the cursor 435 to an incremental bid level of $45.75. The entry and
acceptance of this bid resulting in the that illustrated in FIG. 9.
Now, the current bid amount is $45.75 and the new incrementally
increased next bid amount is automatically set at the next
incremental increase level of $46.00.
[0037] With reference next to FIG. 10, the seller has decreased the
sell current offer from $47.00 to $46.25. Again, the seller may
accomplish such a change through either the automatic incremental
increases or through the manual method utilizing the cursor to
enter the desire incremental level. The sell current offer amount
window 320, new sell offer amount identifier window 340, and
graphically the sell bid selector 310 are all reconfigured to
update the change in the current offer amount.
[0038] With reference next to FIG. 11, there is shown a buyer
moving the cursor 435 to an incremental bid level of $46.25. The
entry and acceptance of this bid results in the buy current bid
amount of $46.25 equalling the sell current offer amount of $46.25,
as shown in FIG. 12. This equalling of the buy and sell bids
results in the purchase of the good being auctioned. It should be
understood that messages could have been sent between the first and
second users or between users and the auctioneer using the chat
window 420, with all past messages being displayed in the chat
history 430.
[0039] It should be understood that the present invention may
include a graphic display having only one selector (graphical
element) wherein the sell bid may be shown on the one portion of
the selector and the buy bid shown on another portion of the
selector with the bid incremental levels shown therebetween. The
user may then graphically change the bid amount by conventionally
clicking and dragging the graphic image with the use of the cursor
435.
[0040] It should be understood that the present invention may be
used in connection with a global computer network system
interconnecting multiple remote users each having a computer or
workstation or with a central computer system having multiple video
workstation monitors.
[0041] It thus is seen that a new method of auctioning and system
for conducting auctions is now provided that has distinct
advantages over the prior art. While the invention has been
described in detail with particular reference to the preferred
embodiments thereof, it should be understood that many
modifications, additions and deletions, may be made thereto without
departure from the spirit and scope of the invention as set forth
in the following claims.
* * * * *